JBT Marel (JBT) Q1 2025 Earnings Call May 05, 2025 11:00 AM ET Company Participants Marlee Spangler - Senior Director - Investor RelationsBrian Deck - President & CEOÁrni Sigurdsson - PresidentMatthew Meister - EVP & CFOJustin Ages - Director - Equity Research Conference Call Participants Mircea Dobre - Associate Director of Research & Senior Research AnalystRoss Sparenblek - Equity Research Analyst Operator Welcome to JBT Morell's Earnings Conference Call for the First Quarter of twenty twenty five. My nam ...

Financial Data and Key Metrics Changes - For Q1 2025, the company reported net income of $2.6 million or $0.19 per diluted share on net sales of $55.5 million, with gross margins increasing to 26.7% from 25% in the prior year period, reflecting a 161 basis point improvement driven by lower operational costs [19][20] - Selling, general, and administrative expenses decreased by 1.2% or $100,000 compared to the prior year, totaling $10.6 million, while earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by $500,000 to $4.9 million [19][20] - Total cash provided by operations for Q1 2025 was $3.8 million, a significant increase from $7,000 in the prior year period [20] Business Line Data and Key Metrics Changes - Despite a 3% year-over-year decline in net sales, the company experienced growth in key categories such as archery, safety, darting, and outdoor games, which outperformed the prior year [6][7] - Inventory levels rose modestly as the company built stock ahead of the spring selling season for archery, basketball, and playground categories [7] Market Data and Key Metrics Changes - The company noted ongoing softness in discretionary spending and declining consumer sentiment, yet maintained a diversified portfolio that resonated with consumers [6][11] - The company is actively analyzing and planning for expanded sourcing scenarios due to trade uncertainties, particularly concerning China [12][30] Company Strategy and Development Direction - The company is focused on operational discipline, innovation, and customer centricity, with a strategy that includes optimizing supply chains and expanding domestic manufacturing capacity [10][11] - The company is investing in direct-to-consumer and e-commerce initiatives to deepen consumer engagement and build loyalty [14][17] - The company remains open to strategic acquisitions that enhance its brand portfolio and expand addressable markets, maintaining financial discipline in its approach [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by a dynamic macroeconomic and geopolitical landscape but expressed confidence in the company's ability to navigate uncertainties through a diversified portfolio and strong margin structure [11][30] - The company is taking proactive steps to mitigate tariff impacts and is evaluating various scenarios to adapt to changing market conditions [12][31] Other Important Information - The company reduced bank debt by $1.8 million during the quarter and returned capital to shareholders through dividends and share repurchases [8] - The company completed remediation of material weaknesses in its internal financial reporting controls, which were initially disclosed in March 2024 [20][21] Q&A Session Summary Question: Follow-up on proactive steps to address the tariff situation - Management recognized high uncertainty in the marketplace but emphasized their diversified portfolio and agile supply position to navigate challenges [27][30] Question: Quantification of tariff impact in Q1 - The company indicated a little over 100 basis points negative impact from tariffs in Q1, despite achieving a 161 basis point improvement in gross margins [33] Question: Inventory levels and their implications - Management confirmed that inventory levels were strategically reduced, and existing inventory is valuable as it does not incur tariffs, contributing to lower costs [34][35]

Park Hotels & Resorts (PK) Q1 2025 Earnings Call May 05, 2025 10:00 AM ET Company Participants Floris van Dijkum - Managing DirectorIan Weissman - Senior Vice President of Corporate StrategyThomas Baltimore - Chairman, President & CEOSean Dell'Orto - Executive VP, CFO & TreasurerDavid Katz - Managing DirectorDuane Pfennigwerth - Senior Managing DirectorC. Patrick Scholes - Managing Director - Lodging & Leisure Equity ResearchSmedes Rose - DirectorJay Kornreich - VP - Equity ResearchRobin Farley - Managing D ...

Financial Data and Key Metrics Changes - Uber's gross bookings grew 20% annually from $65 billion in 2019 to $163 billion in 2024, with adjusted EBITDA improving by over $9 billion to reach $6.5 billion in profits in 2024 [37] - In Q4 2024, gross bookings increased 21% year-on-year on a constant currency basis to $44.2 billion, while adjusted EBITDA grew 44% year-on-year to $1.8 billion [39] - The company achieved its first quarter of over $1 billion in GAAP operating income and converted adjusted EBITDA to free cash flow at over 90% rates [37][39] Business Line Data and Key Metrics Changes - The mobility and delivery businesses showed strong growth, with significant increases in trips and gross bookings [39] - The Uber One membership program reached 30 million members by the end of 2024, up approximately 60% year-on-year [40] - Uber Eats crossed $20 billion in gross bookings in a single quarter for the first time, achieving record highs in adjusted EBITDA and adjusted EBITDA margin [87] Market Data and Key Metrics Changes - Uber operates in over 70 countries and more than 15,000 cities, serving multiple multi-trillion dollar markets across mobility, delivery, and logistics [36] - The company has over 171 million monthly active platform consumers and 8 million earners [39] Company Strategy and Development Direction - Uber aims to be the default choice for the movement of people and things, focusing on building best-in-class products and leveraging its platform for customer acquisition [36][38] - The company plans to enhance its mobility and delivery services, expand in low-density markets, and innovate with AI to improve customer experience [44] - Uber is committed to advancing its autonomous vehicle strategy, with multiple partnerships and a focus on safety and operational excellence [41][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining industry-leading growth despite evolving macroeconomic conditions, with expectations for mid to high teens gross bookings CAGR and high thirties to 40% adjusted EBITDA CAGR through 2026 [42] - The company is focused on delivering commitments to shareholders while navigating economic challenges, emphasizing the importance of affordability and service quality [44][100] Other Important Information - Uber's executive compensation is aligned with performance and market levels, with a focus on attracting and retaining top talent [48][50] - The company has not declared or paid cash dividends, prioritizing share buybacks and reinvestment in growth [75][76] Q&A Session Summary Question: Why is executive compensation so high at Uber? - The board ensures compensation is competitive to attract and retain top executives, aligning incentives with shareholder interests [48] Question: What are Uber's strategies for ensuring fair compensation and support for drivers? - Uber focuses on transparency, providing tools for drivers to make informed decisions, and advocating for safety and fair earnings opportunities [51][54] Question: What steps has Uber taken to maximize and increase driver earnings? - Uber has seen drivers earn a record $72 billion globally, up 22% year-on-year, and continues to introduce features to enhance driver experience and earnings [57][58] Question: Why did you allow your CEO and Uber to donate $2 million to the inauguration of Trump? - Uber has consistently donated to inaugural funds to demonstrate support for major moments in civic life [59] Question: When will Uber start paying a dividend? - Uber does not expect to declare or pay cash dividends in the near future, focusing on share buybacks and reinvestment [75][76] Question: What measures is Uber taking to ensure safety as EVs are integrated into the platform? - Uber emphasizes high safety standards for autonomous vehicles, requiring them to be significantly safer than human drivers [78][79] Question: What markets outside of the United States have seen success with the Uber for teens program? - Brazil has shown strong growth in the Uber for teens program, approaching U.S. trip volumes despite launching later [83] Question: What are the next overall metrics that you plan to surpass in the Uber Eats category? - Uber Eats aims for continued high teens growth, expanding merchant selection and improving delivery reliability [87] Question: What initiatives are you most excited about to drive adoption of Uber One membership? - Uber One membership has grown significantly, with new benefits being introduced to enhance user engagement and retention [90] Question: What is Uber's broader partnership strategy? - Uber seeks to deepen loyalty and engagement through partnerships across various business lines, enhancing value for users and merchants [94][96] Question: How do economic downturns affect earner sign-ups and engagement on the Uber platform? - Historical data suggests that driver supply tends to increase during economic downturns, improving service reliability and consumer experience [100]

Financial Data and Key Metrics Changes - The company achieved RevPAR growth of 1.6% in Q1 2025, driven by a 2.1% increase in ADR, slightly offset by a 0.5% decline in occupancy [5][17] - First quarter occupancy was 69.1%, average daily rate was $204.31, and RevPAR was $141.23 [17] - Total revenue growth was 1.2%, benefiting from a 3.8% increase in out-of-room spend [18][20] - Adjusted EBITDA for Q1 was $77.6 million, and adjusted FFO per diluted share was $0.31 [20][22] Business Line Data and Key Metrics Changes - Group segment was the best performing, with revenue growth of 10% driven by strong citywide events [8][18] - Urban hotels achieved RevPAR growth of 3.6%, with weekday urban RevPAR growing by 4.9% [7][8] - The leisure segment saw a 2% increase in revenues, with urban leisure outperforming at 3% growth [9] Market Data and Key Metrics Changes - Strong RevPAR growth was noted in urban markets such as San Jose (14.1%), Houston CBD (9.9%), Philadelphia (26.4%), Pittsburgh (12.6%), and Louisville (10.3%) [18] - International demand remains soft, representing less than 3% of revenues, primarily in markets like New York and South Florida [13] Company Strategy and Development Direction - The company is focused on capital recycling and strengthening its balance sheet, including opportunistic asset sales and share repurchases [6][10] - The company is optimistic about the long-term outlook for lodging fundamentals, supported by consumer preferences for experiences and a favorable operating environment for urban markets [14][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that fundamentals have moderated and uncertainty persists due to macroeconomic risks, leading to an adjustment in full-year guidance [11][12] - The company expects RevPAR growth for 2025 to range between negative 1% and positive 1% [25] - The booking window has shortened, with a noted increase in cancellations primarily in the government segment [47][48] Other Important Information - The company ended Q1 with over $800 million in liquidity and $2.2 billion in debt, maintaining a strong balance sheet [22] - The company has a new $250 million share repurchase program approved by the Board [22] Q&A Session Summary Question: Can you provide insights on April's performance and how it compared to expectations? - Management indicated that April was expected to be slightly positive but came in lower than anticipated due to elongated spring break and softening government demand [30][31] Question: What is the current state of the balance sheet and capital markets? - The bank group market remains strong, with capacity for top-quality sponsors, while high-yield issuance has seen some widening in spreads [34][35] Question: What are the trends in the group segment and future bookings? - The group segment is performing well, with a healthy booking pace for the year, although cancellations were noted primarily in the government sector [78] Question: How is the company addressing the uncertainty in the transaction market? - The company is taking an opportunistic approach to asset sales, with one additional asset currently under consideration [92]

Financial Data and Key Metrics Changes - Net sales for Q3 2025 decreased by 10.8% to $44 million compared to $49.3 million in Q3 2024 [11] - Net income for Q3 2025 decreased by 23.3% to $10.1 million, or $0.28 per share, compared to $13.2 million, or $0.36 per share, in the same period last year [20] - Adjusted EBITDA for Q3 2025 decreased by 15.4% to $13.2 million, equating to a margin of 30% [22] - The company remains debt-free with cash and cash equivalents totaling $89.3 million as of March 31, 2025 [23] Business Line Data and Key Metrics Changes - Recurring monthly service revenue grew by 10.6% in Q3 to $21.6 million, up from $19.5 million in Q3 2024 [12] - Equipment sales for Q3 decreased by 24.8% to $22.4 million compared to $29.7 million in the same period last year [12] - Gross profit for recurring service revenue increased by 9.5% to $19.6 million, maintaining a gross margin of 91% [15] Market Data and Key Metrics Changes - The company reported that recurring service revenue accounted for 49% of total revenue in Q3 2025 [26] - The annualized run rate for recurring service revenue increased to approximately $89 million based on April 2025 results, up from $86 million in January 2025 [27] Company Strategy and Development Direction - The company is focused on accelerating innovation and expanding its product development pipeline, which is described as the strongest ever [9] - New product lines, including cloud-based solutions, are being introduced to enhance recurring revenue opportunities [27] - The company aims to penetrate markets such as school security, healthcare, and retail loss prevention [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term strategy despite external challenges, emphasizing the resilience of the operating model [26] - The company anticipates continued growth in recurring revenue, particularly from the Starlink line of products [27] - Management noted that the security industry remains robust despite economic uncertainties, with ongoing demand for security solutions [78][80] Other Important Information - The company plans to issue a quarterly dividend of $0.14 per share, reflecting a sequential increase [33] - The company has engaged in significant stock buybacks, spending $18.8 million in Q3 and $36.7 million for the nine months [25] Q&A Session Summary Question: Can you discuss the mix of hardware capable of generating recurring services revenue? - The recurring revenue primarily comes from Starlink radios, with new advanced products introduced at ISC West [35] Question: What are you seeing in terms of quoting activities for projects? - Sell-through stats are encouraging, with increases in various segments, indicating improved demand [44] Question: Can you provide more detail on the weakness in the locking products area? - The weakness is attributed to tariff-driven issues and inventory management by distributors [54] Question: How sensitive is the demand for security systems to economic downturns? - The company believes its business is recession-resistant, as security needs persist regardless of economic conditions [80] Question: What is the magnitude of the price increases announced? - An 8.5% surcharge was implemented to cover tariff costs, with a typical annual price increase expected in July [89]

Financial Data and Key Metrics Changes - JBT Morell's revenue exceeded guidance by $19 million, driven by better-than-expected equipment shipments and strong recurring revenue [17] - Adjusted EBITDA margin was 13.1%, outperforming guidance by 60 basis points, attributed to volume flow-through, favorable mix, and good expense control [17] - Free cash flow for the first quarter was $18 million, including approximately $42 million in one-time M&A related payments [19] Business Line Data and Key Metrics Changes - JBT segment revenue increased by 4% year over year, or 5.6% on a constant currency basis, with adjusted EBITDA of $61 million, up 6% [18] - MRL segment revenue was flat year over year but grew 2% on a constant currency basis, with adjusted EBITDA increasing by 19% to $51 million [19] Market Data and Key Metrics Changes - Demand from the poultry industry showed a 12% year-over-year increase, continuing a recovery trend [5] - The company experienced healthy orders across diversified end markets, including meat, beverage, pharma, and pet food [5] Company Strategy and Development Direction - The company is focused on integrating its two organizations to enhance customer service and product offerings [13] - JBT Morell aims to leverage its comprehensive portfolio of solutions to support customers across the entire production value chain [15] - The company has temporarily suspended full-year financial guidance due to macroeconomic uncertainties and tariff impacts [7][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage near-term impacts from tariffs and macroeconomic uncertainties [7] - There is less visibility for the second half of the year due to potential slower economic growth and higher prices affecting customer investment decisions [8] - Management noted that approximately half of the company's revenue comes from resilient recurring revenue, which is beneficial in uncertain times [11] Other Important Information - The estimated annualized cost impact from tariffs is approximately $50 million to $60 million, or $12 million to $15 million per quarter [10] - The company expects to achieve total in-year cost synergies of $35 million to $40 million in 2025, with annual run rate savings of $80 million to $90 million by the end of the year [20] Q&A Session Summary Question: Thoughts on guidance and customer behavior changes - Management indicated that the decision to pull full-year guidance was due to lack of clarity in the environment, not significant changes in customer behavior [26][28] Question: Recurring revenue impact from tariffs - Management believes that the recurring revenue component is less likely to be impacted by tariffs, as there was strong order strength in parts before tariff visibility [34] Question: Backlog and order delays - Management clarified that the backlog was affected by foreign exchange and adjustments during the integration process, with no significant cancellations reported [45] Question: Integration and demand impact - Management stated that cost synergies can continue regardless of demand changes, but material purchasing volume could be a risk in a lower demand environment [94]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported net income of $2.6 million or $0.19 per diluted share on net sales of $55.5 million, with gross margins increasing to 26.7% from 25% in the prior year period, reflecting a 161 basis point improvement due to lower operational costs [17][18] - Selling, general and administrative expenses decreased by 1.2% or $100,000 to $10.6 million compared to the prior year [17] - Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by $500,000 to $4.9 million in Q1 2025 [17] Business Line Data and Key Metrics Changes - Net sales declined approximately 3% year over year, but gross margins expanded by more than 160 basis points, driven by lower manufacturing and logistics costs [5][17] - The company saw growth in key categories such as archery, safety, darting, and outdoor games, which outperformed the prior year period despite overall softness in discretionary spending [5] Market Data and Key Metrics Changes - Inventory levels rose modestly during the quarter as the company built inventory ahead of the spring selling season for archery, basketball, and playground categories [6] - The company maintained a strong focus on working capital efficiency, generating nearly $4 million in operating cash flow [6] Company Strategy and Development Direction - The company is focused on operational discipline, innovation, and customer centricity, with a strategy to strengthen direct-to-consumer and e-commerce presence [9][13] - Plans include expanding domestic manufacturing capacity and diversifying global sourcing to mitigate tariff impacts and enhance supply chain resilience [11][12][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing softness in consumer sentiment and discretionary spending but expressed confidence in the company's diversified portfolio and operational improvements [10][12] - The company is actively analyzing and planning for various sourcing scenarios in response to trade uncertainties, particularly regarding China [11][30] Other Important Information - The company reduced bank debt by $1.8 million and paid a quarterly dividend of $2.1 million during the quarter [7] - Total debt outstanding as of March 31, 2025, was $23.8 million, with a net leverage ratio of 0.8 times trailing twelve months EBITDA [18] Q&A Session Summary Question: Follow-up on proactive steps to address the tariff situation - Management highlighted the importance of a diversified category portfolio and agile supply position to navigate uncertainties, mentioning ongoing optimization of the supply chain and potential pricing actions [25][30] Question: Quantification of tariff impact in Q1 - Management indicated that there was a little over 100 basis points negative impact from tariffs in Q1, but still achieved a 161 basis point improvement in gross margins [32] Question: Inventory levels and their implications - Management explained that inventory levels were strategically reduced over the past few years, resulting in a more right-sized inventory that contributed to lower costs [33]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported a year-over-year growth in management fees of 18%, FRE growth of 22%, and after-tax realized income per share of Class A common stock growth of 36% [6][25][32] - The total AUM reached $546 billion, marking a significant milestone as it crossed over $5 trillion for the first time [7][25] - The company declared a quarterly dividend of $1.12 per share, representing a 20% increase over the same quarter last year [4][5] Business Line Data and Key Metrics Changes - Fundraising activities reached over $20 billion in gross new capital commitments, the highest level for Q1 fundraising on record [7][15] - The private credit strategies saw a gross to net deployment ratio of 49%, with capital deployment in drawdown funds increasing nearly 20% over the previous quarter [7][9] - The company experienced strong performance across various strategies, with significant inflows in real estate, infrastructure debt, secondaries, and private equity [15][17] Market Data and Key Metrics Changes - The company noted a shift in market conditions due to increased volatility and uncertainty, particularly following the announcement of tariffs and geopolitical events [8][22] - Despite market challenges, the company maintained a record amount of dry powder, with $142 billion available for deployment [9][12] - The European direct lending business saw a 20% year-over-year increase in deployment, indicating a modest acceleration in the European market [82] Company Strategy and Development Direction - The company aims to leverage its asset-light business model and flexible private market strategies to capitalize on market dislocations [10][11] - A focus on credit-related products is emphasized, with over 72% of total AUM in credit-related assets, primarily senior loans [12][22] - The integration with GCP International is progressing well, with expectations of realizing significant synergies in the coming months [24][76] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about navigating current economic uncertainties, citing a strong investment pipeline and the ability to invest opportunistically [22][37] - The company anticipates slower M&A activity until more certainty regarding tariffs and economic conditions is established, but sees potential for enhanced investment opportunities [22][23] - Management highlighted the resilience of the business model during past market dislocations, reinforcing confidence in future performance [10][37] Other Important Information - The company reported a significant increase in fee-related performance revenues, totaling $28 million, a substantial rise from $4 million in Q1 2024 [27] - The effective tax rate on realized income was reported at 8.1%, with expectations of a lower range of 8% to 12% for the remainder of the year [32] Q&A Session Summary Question: What is the outlook for private credit quality given potential negative GDP growth? - Management indicated that 96% of exposure in the Global Credit business is in senior loans, with low loan-to-value ratios, suggesting limited risk of defaults [40][42] Question: Can you discuss the momentum in wealth management and product growth? - Management noted record capital gathering in wealth management, with a broadening distribution network and new product offerings [50][51] Question: What is the outlook for FRE margin expansion? - Management remains optimistic about achieving zero to 150 basis points of margin expansion, despite some drag from GCP integration [58][59] Question: How is the pipeline for M&A and deployment in the current market? - Management highlighted the ability to invest across various strategies even in a subdued M&A environment, with significant dry powder available for opportunistic investments [63][67] Question: What are the opportunities in the European market compared to the U.S.? - Management noted an increase in investor appetite for European products and a modest acceleration in deployment in Europe [80][82]

Financial Data and Key Metrics Changes - Ares Management reported a year-over-year growth in management fees of 18%, with fee-related earnings (FRE) increasing by 22% and after-tax realized income per share of Class A common stock growing by 36% [5][24]. - The company declared a quarterly dividend of $1.12 per share, representing a 20% increase over the same quarter last year [3][4]. - Total assets under management (AUM) reached $546 billion, marking a significant milestone as the company crossed over $5 trillion in total AUM for the first time [6][24]. Business Line Data and Key Metrics Changes - Fundraising activities were robust, with over $20 billion in gross new capital commitments, the highest level for first-quarter fundraising on record [6][14]. - Deployment activities also saw strong performance, with over $31 billion deployed in the quarter and a gross to net deployment ratio of 49% in private credit strategies [6][9]. - The company experienced significant inflows across various strategies, with over 45% of quarterly fundraising coming from outside the credit group, including real estate, infrastructure debt, and private equity [14][15]. Market Data and Key Metrics Changes - The market environment has been characterized by increased volatility and uncertainty, particularly following geopolitical events and tariff announcements [7][20]. - Despite these challenges, Ares has maintained a record amount of dry powder, with $142 billion of available capital, which positions the company well to capitalize on market opportunities [9][36]. - The company noted that over 72% of total AUM is in credit-related products, with more than 92% of these being senior loans, indicating a defensive positioning in the current economic climate [12][20]. Company Strategy and Development Direction - Ares Management aims to leverage its flexible private market strategies to gain market share during periods of volatility, emphasizing its asset-light business model and focus on third-party client interests [10][36]. - The integration with GCP International is progressing well, with expectations of realizing significant synergies and enhancing vertically integrated capabilities in real estate [23][24]. - The company is optimistic about growth opportunities in real estate, particularly in response to anticipated increases in construction costs due to tariffs, which may constrain supply [14][20]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current economic uncertainty, citing a strong investment pipeline and the ability to invest opportunistically across various strategies [20][36]. - The company remains optimistic about 2025 and beyond, highlighting its resilience during challenging market conditions and the strength of its diversified investment strategies [36][37]. - Management noted that while M&A activity may slow, there are still significant opportunities in direct lending and credit markets, with expectations of continued strong performance in these areas [20][66]. Other Important Information - The company reported a significant increase in fee-related performance revenues, totaling $28 million, up from $4 million in Q1 2024, driven by strong fund performance [26][27]. - Ares Management's corporate loan portfolios are performing well, with strong credit quality and low loan-to-value ratios, indicating a solid foundation for future growth [32][40]. - The company is actively engaged with new partners in the reinsurance sector, expanding its reach in both the U.S. and APAC regions [23][24]. Q&A Session Summary Question: What do you expect for the remainder of 2025 regarding private credit quality? - Management highlighted that 96% of their Global Credit exposure is in senior loans, with low loan-to-value ratios, indicating a strong position against defaults and non-accruals [40][42]. Question: Can you discuss the momentum in wealth management and product growth? - Management noted record capital gathering in wealth management, with a broadening distribution network and new product offerings, maintaining strong inflows despite market turbulence [50][52]. Question: What is the outlook for FRE margin expansion? - Management remains optimistic about achieving zero to 150 basis points of margin expansion, citing ongoing integration efforts and synergies from GCP [56][59]. Question: How does the M&A backdrop affect deployment strategies? - Management indicated that even with subdued M&A activity, they have demonstrated the ability to invest across various strategies, particularly in opportunistic credit and secondaries [62][66]. Question: What is the opportunity set in Europe for private credit? - Management observed increased investor appetite for European products, with a modest acceleration in deployment and a favorable competitive position in the market [78][80].